Stay objective and don't just blindly jump into overbought names.

MINYANVILLE ORIGINAL Be careful of your entry points for momentum stocks. As of late, there are talking heads on TV that recommend buying momentum stocks into the year-end rally because this is what has been working. But that seems to be a poor strategy. Two momentum stocks that have been discussed are Amazon (NASDAQ:AMZN) and Google (NASDAQ:GOOG). Amazon was overbought as of Thursday and is now Neutral on our counter trend reading, and we have a strong buy on the name. As for Google, the name is still overbought; however, it is rated a Strong Buy. As you can see in the first chart, Google is down $30 since going to an overbought level. At this juncture, we would wait for a Neutral reading before getting long the name. The bottom line: Stay objective and don’t just blindly jump into overbought names.

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